It also allows the company to resell those stocks it bought back later to generate revenue if, and when, it needs it. It can also use that stock to compensate employees.
Technically yes, but nVidia is priced so high right now, they’d probably be selling their own stock at a loss if they sell any after the LLM bubble pops. Not a very good use of a ton of money. On the other hand, if they sell when the stock price is even higher, that’s a nice profit and they can always issue another buyback if the LLM bubble does pop.
I think this is a great way to downsize expectations though. That’s 150 billion they’re no longer expected to pump into even more AI hardware R&D and production. So in general I agree with you that this could be a good thing.
Technically yes, but nVidia is priced so high right now, they’d probably be selling their own stock at a loss if they sell any after the LLM bubble pops. Not a very good use of a ton of money. On the other hand, if they sell when the stock price is even higher, that’s a nice profit and they can always issue another buyback if the LLM bubble does pop.
I think this is a great way to downsize expectations though. That’s 150 billion they’re no longer expected to pump into even more AI hardware R&D and production. So in general I agree with you that this could be a good thing.